inflation
Inflation
A common cause for this is unemployment, or when an institution isn't functioning to its fullest potential due to lack of labor (labor being classified as a resource.)
increase
money demand will decrease
Basically a huge financial debt... or you'll have to resort to using gold, silver, or other valuable precious metals
Inflation
inflation
When the amount of money increases at a faster rate than the production of goods, the result is inflation, an increase in prices as "more money pursues the same goods".
Inflation is the rate of increase in prices over a given period of time.
A common cause for this is unemployment, or when an institution isn't functioning to its fullest potential due to lack of labor (labor being classified as a resource.)
increase
money demand will decrease
Basically a huge financial debt... or you'll have to resort to using gold, silver, or other valuable precious metals
Increase or decrease the money supply
the prime rate
Inflation is a continuous rise in the price of goods and services.The effect of Inflation is the increase of prices for goods and services within an economy. The cause of inflation in an increase in an economies capital (paper money) in circulation, where the value of money decrease and prices go up.A persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency.In other contexts it means to increase the volume by air. When breathing in, you inflate your lungs.Inflation is a general and progressive increase in prices.
The more surplus money people have, the more money they have to buy goods - not just the staple goods, but more luxurious goods.